To understand the current housing market, we spoke with economists, mortgage brokers and real estate agents to chart the course to follow. A lot could change, especially with economic obstacles on the horizon, but everyone agreed that the market is cooling rapidly. Home prices are going to fall, but not as much as some buyers expected. Vendors are going to have to go back to work to close their doors.
And tenants may ultimately benefit from rising prices, even if prices remain well above pre-pandemic levels. RealPage predicts that rent at domestic market prices will increase by 3.3 percent next year, which is more in line with typical rental growth. The average number of days that ads spend in the market is low, and the part of the ads that offer price drops is similar to the seasonal behavior prior to the pandemic, suggesting that New York is still in a seller's market. Sharga said, adding that the forces that caused prices to fall after the great recession, irresponsible lending and oversupply are not at play.
Inventory shortages and strong buyer demand continued to push up home prices, and multiple offers on a limited number of homes were common in most segments of the market. You could buy a small apartment building with several tenants for the cost of a single rental property in a more expensive New York housing market. Even in markets where prices haven't fallen, sellers are increasingly open to sweeteners, agents said, such as accepting contractual contingencies in the event of funding problems or offering to pay for loose ends to close the deal. An index of 120 means that the average household income is 120% of what is needed to qualify for a mid-priced home at current interest rates.
However, the best strategy for sellers is to start with the right price, said Steven James, president and CEO of Berkshire Hathaway HomeServices New York Properties. It also means that Syracuse real estate investment properties will maintain their value for the foreseeable future if they don't appreciate it. While few markets have renounced the price increases of the pandemic era, the large increases in supply in September could be a precursor to the fall in prices. Buffalo real estate investment offers a surprisingly good deal with low prices and relatively high rental rates.
He expects prices to fall 5 to 10 percent in Manhattan due to rising mortgage rates, and said sellers should stay ahead of the curve, because staying in the market involves risks. Rising house prices, by discouraging potential migrants, could significantly reduce the growth potential of the economy, shifting the balance of labor market growth from employment to wages, with the subsequent deterioration of competitiveness. Other types of housing that are prevalent in New York include detached single-family homes, duplexes, townhouses, and houses converted to apartments. Lawrence Yun, chief economist at the National Association of Realtors, said that “it may be another year or two before mortgage rates start to fall.